SK Hynix, the South Korean memory-chip maker, is gearing up to announce its financial results for the third quarter on Thursday. Here's what you need to know:
Net Loss Forecast
According to a consensus forecast compiled by FactSet, SK Hynix is expected to report a net loss of KRW 1.156 trillion ($860.3 million) on a consolidated basis for the September quarter. This reflects an improvement compared to the previous quarter's loss of KRW 2.988 trillion and a decline from the profit of KRW 1.103 trillion recorded a year ago.
The FactSet-compiled consensus estimates an operating loss of KRW 1.652 trillion and a 26% year-on-year decrease in revenue, projecting it to be around KRW 8.122 trillion for the quarter.
What to Watch
There are several key factors to watch out for in SK Hynix's upcoming report:
Investors will be closely observing whether SK Hynix continues its path to recovery, particularly with regards to narrowing its losses significantly from the previous quarter.
Industry analysts believe that the semiconductor-sector downturn may be easing off, largely due to industry-wide production cuts aimed at addressing a supply glut. Additionally, the growing demand for powerful computing chips in the era of artificial intelligence is expected to contribute positively to the recovery.
Another aspect of interest is whether SK Hynix's DRAM business, ahead of its NAND business, achieved profitability in the third quarter. This will largely depend on the robust sales of premium products like high-bandwidth-memory3 and double data rate5 chips, as they are expected to uplift the average selling prices.